Growing up: Revenue will rise, but competition from alternative retailers is increasing

IBISWorld’s Children's & Infants' Clothing Stores market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

The industry has had to battle against tough external competition. Many department stores and international brands started selling children's clothing in Canada, which reduced the overall price point at which such items are sold. Additionally, significant volatility in the price of cotton has resulted in shrinking profit margins. However, the industry has slowly recovered from the financial crisis, increasing slightly over the past five years. In the next five years, per capita disposable income is expected to rise and a falling unemployment rate will support stronger industry revenue growth. Nevertheless, the industry will continue to experience intense competition from alternative retailers, threatening industry growth... purchase to read more

Industry Report - Industry SWOT Analysis Chapter

IBISWorld expects industry value added (IVA) to decline at an average annual rate of 1.6% over the 10 years to 2020. In comparison, Canada's GDP is forecast to rise at an annualized rate of 2.2% over the same period, indicating that this industry's overall contribution to Canada's GDP is decreasing. IVA growth is restrained due to the rising trend of declining profit margins, as competition intensifies and the industry becomes less hospitable for additional retailers. While a decline in IVA is generally characteristic of a declining industry, in this particular case it needs further exploration. IVA declined at an annualized rate of 3.5% over the five years to 2015. This decline was driven by a reduction in the industry's profit margin as competition intensified and input costs rose... purchase to read more